Too many suspicious items in this deal, too many open ended questions, too much is missing, too few answers.
How several contacts for multi-year service and maintenance, (1 alone at $100 million US) can be devalued so much, without 3rd party review - is amazing.
RBC did their due diligence on their $200 Million dollar loan last year, and had no issues loaning that amount - but now thanks to over aggressive write downs the debt is more than the equity ?
RBC claims to be losing money on this deal...and RBC is continuing to loan these guys money !!!
I can't believe the deal that Versa is getting, Allen-Vanguard for pennies on the dollar, and EDC financing to purchase !!!
It must seem odd to outsiders that Allen-Vanguard management remained in exclusive discussions with Versa so long - and shut out other potential bids - to shareholders detriment, yet management retains their salaries. What kind of Board of Directors agrees to that ?
So many contradictions, that have not been reviewed, it is strange that Allen-Vanguard claims sales are way down, check out this post, 2009 Annual Report for XTEK Limited:
EOD General Equipment
The company experienced a particularly strong year of sales of general EOD equipment after a very slow period in 2008. Orders
that were received during the year included specialist EOD tool kits from Allen Vanguard, RTR X-Ray kits from SAIC and Golden
Engineering, remote firing systems from Chemring and cable detectors from Guartel.
These sales will allow XTEK to offer new and advanced capabilities to our customers and are expected to lead to revenue growth
in 2010.
http://newsstore.theage.com.au/apps/previewDocument.ac?docID=GCA00992696XTE |
